Air Canada in red again (for Q4 2005), will cut 20% staff

[CathayPacific]

Quotes from Yahoo news:

Ace Aviation Holdings, Air Canada's parent company, said it swung to a loss in the fourth quarter of 2005 as a result of surging fuel costs, and announced plans to cut its workforce.

The company reported a loss of 103 million dollars (90 million US dollars) Friday, compared with a profit of 15 million dollars in the same quarter last year.

...

In light of "the difficult fuel cost environment," the company said it would cut its non-unionized staff by 20 percent. The airline employs 33,100 people, but it did not specify how many are non-unionized.

...

For the entire year ended December 31, 2005, Ace Aviation boosted its earnings to 258 million dollars (227 million US) from a loss of 880 million dollars in 2004, including an 871-million-dollar restructuring charge.

[Chris@YYZ]

wow, good luck Air Canada!

[DAL767-400ER]

But the money to order dozens of new 777s and 787s was there...

[a78jumper]

Whats the other option-run your fleet down to nothing like PanAm did? Most pax won't notice fewer employees, but they will notice planes that look like crap, that break down incessantly. Eastern towards the end was just as bad, and Northwest is in a world of hurt now partly because of an antiquated and costly to operate DC9 and DC10 fleet that should have been replaced a few years ago. Folks here like them because of their uniqueness but I think most passengers would rather beflying in a new Airbus 319/320, or a 330. Air Canada really has chopped costs to the bone, some of them I question however labour is always going to take the first and hardest hit.

[DAL767-400ER]

Whats the other option-run your fleet down to nothing like PanAm did?

Yeah, a run-down fleet of A330s and A340s.

but they will notice planes that look like crap, that break down incessantly.

If the planes look like crap, it's because the airlines let them look like that, not because the plane is ageing. Just look at the interiors of NW's DC-9s: They are old as hell, but still look as good as new inside.

but I think most passengers would rather beflying in a new Airbus 319/320, or a 330.

Providing that you believe that regular passengers actually know the difference between a DC-9 and an A319.

[ACman]

Do you have a link? Cause I cant find this anyware on Reuters or the AC website. I dont think they would be in the hole if there giving a $54 million profit share out to thee emplyees.

[andrew_c]

Do you have a link? Cause I cant find this anyware on Reuters or the AC website. I dont think they would be in the hole if there giving a $54 million profit share out to thee emplyees.

http://news.yahoo.com/s/cpress/20060...u/air_canada_5

MONTREAL (CP) - ACE Aviation Holdings Inc. (TSX:ACE.B - news), the corporate parent of Air Canada, will cut 600 non-unionized jobs after a fourth-quarter loss of $103 million, and signalled other cuts or asset sales haven't been ruled out.

The loss is down from a year-earlier profit of $15 million, the major drag on earnings coming from rising fuel costs, CEO Robert Milton said Friday. "Recognizing the significant progress we have made, there is no room for any complacency and we must continue to pursue efficiencies throughout our businesses," Milton told analysts in a conference call.

Chief financial officer Brian Dunne said the job cuts amount to a 20 per cent reduction in non-unionized staff.

[ACman]

EDIT: Found it a while back

But howcome I cant find it on Reuters or AC?

[andrew_c]

EDIT: Found it a while back

But howcome I cant find it on Reuters or AC?

Maybe ashamed

But realistically, they are probably preparing a statement to make creditors feel ok with the loss, so further losses can be avoided. Nevertheless AC is in great shape compared to most of the North American aviation scene, a mere 45 million dollar loss in a quatre is nothing compared to south of the boarder.

[ACman]

This article was created on Feb 10th, same time ACE had said they have a large protfit ect...

Since AC is a public company, this means any ups or downs in the finance dept. have to be reported sometime in the quarter or at the end of the quarter.

Today is the 11th, so I think they would have posted the article by now. If I find it, ill post it. CBC seems to have the story too, but from the same author.

[bbuse]

If the planes look like crap, it's because the airlines let them look like that, not because the plane is ageing. Just look at the interiors of NW's DC-9s: They are old as hell, but still look as good as new inside.

The NWA DC-10s that I flew on recently looked as good as new inside and were as comfortable as the other newer jets. Although I didn't mind flying on the DC-10s, I know they are more costly to fly due to the 3 person flight crew and higher fuel consumption than a newer plane such as the A330.

[CanadaEH]

a mere 45 million dollar loss in a quatre is nothing compared to south of the boarder.

ACE lost $103M.

[a78jumper]

The NWA DC-10s that I flew on recently looked as good as new inside and were as comfortable as the other newer jets. Although I didn't mind flying on the DC-10s, I know they are more costly to fly due to the 3 person flight crew and higher fuel consumption than a newer plane such as the A330.

I can not imagine they are too high on the pax satisfaction list either..no PTV, ancient inflight entertainment, quite noisy.

Yeah, a run-down fleet of A330s and A340s.

.

Harldly 20 plus years old as were most of PanAms 747s when they went belly up